IMF Flags Stablecoins as Source of Risk to Emerging Markets, Experts Say We Aren't There Yet

Source: CryptoNewsNet Original Title: IMF Flags Stablecoins as Source of Risk to Emerging Markets, Experts Say We Aren’t There Yet Original Link: The International Monetary Fund’s (IMF) December 2025 report warns that USD-pegged stablecoins could spark currency substitution and capital outflows in vulnerable emerging markets (EMS), undermining local currencies.

Experts, however, said that the stablecoin market is yet to grow big enough to have a real systemic impact.

The December report titled “Understanding Stablecoins” delves into stablecoin use cases, demand drivers, global regulations, and macro financial risks, particularly for emerging markets.

“Stablecoins could be used to circumvent capital flow management measures (CFMs). The implementation of CFMs relies on established financial intermediaries. By providing an avenue for capital flows outside of the common rails, stablecoins could be used to effectively undermine the implementation of CFMs (Cardozo and others 2024; He and others 2022; IMF 2023),” the report said.